UAE to invest another $25 billion in India, eyes energy bets

The United Arab Emirates (UAE) intends to contribute an additional $25 billion to India's economy, with plans to invest in various energy sectors such as strategic petroleum reserves, LPG, LNG, and subsea gas pipelines, according to Commerce and Industry Minister Piyush Goyal. This follows the recent 14th India-UAE Investment Task Force meeting in Mumbai.

The two nations aim to increase their combined investments in India to a total of $100 billion, with the UAE currently having already invested $25 billion. Goyal also stated that India is exploring the UAE as a potential source of LPG and LNG, as well as investigating the feasibility of subsea pipelines for gas transportation and storage.

The talks are taking place amid the ongoing effects of the Covid-19 pandemic, the Ukraine war, and the West Asia crisis. The two countries' trade has already hit $100 billion, and India and the UAE have set a goal to reach $200 billion by 2032.

In terms of trade, India and the UAE have already doubled their bilateral trade to $100 billion, with both sides aiming to double it again by 2032. The Comprehensive Economic Partnership Agreement between the two nations has been in effect for four years.

Local currency settlement between India and the UAE is also growing, currently sitting in double-digits. The UAE Free Trade Agreement (FTA) between the two nations is considered a landmark, as it was negotiated and signed within a record-breaking 90 days.

India's export targets are ambitious, with the country aiming to reach $1 trillion in exports this year from $863 billion last year. Merchandise exports have already grown by over 15% in the first six months of the year, up to September 21. The UAE and India are also exploring opportunities to expand cooperation in areas including energy security, logistics, AI, and other emerging technologies.